Hello. I sold rental property last year and am somewhat confused about how to report it and the turbo tax program seems vague. In 2003 I purchased acreage with a small home for $135,000. In 2007 I finished building a larger home there that cost $300,000 and rented it and at times the original house until 2020. During that period I also refinanced the property to pull equity out to finish the new house. I depreciated it for only 5 years until 2012. I sold the property in January 2022. During 2021 I spent about $40,000 on repairs and improvements, and did not report those on 2021 taxes thinking that would be a write off for when the place sold. Should I file an amended return for 2021 for the improvements and repairs and will they carry forward for 2022? Also what is my cost basis? When escrow closed, the loan payoff amount was about $140,000. Is my cost basis that plus the construction costs of the new house? Also I had selling costs paid out of escrow such as property taxes, a termite report, title agency fees, septic inspection and other inspections and repairs, as well as the sales commission. Are all of these deductible and how do I report them? Is there a better worksheet available for all of this? Thank you.
